{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Sample question.docx - University of Waterloo Department of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Waterloo Department of Economics Econ 207: Economic Growth and Development I Spring 2017 Sample Questions: 1. Is the concept of the developing world a useful one? Why or why not? Answer: In the World Bank’s classification system, 208 economies with a population of at least 30,000 are ranked by their levels of gross national income (GNI) per capita. These economies are then classified as low-income countries (LICs), lower-middle-income countries (LMCs), upper-middle-income countries (UMCs), high-income OECD countries, and other high-income countries. Generally speaking, the developing countries are those with low-, lower middle, or upper-middle incomes. Low-income countries are defined by the World Bank as having a per capita gross national income in 2005 of $875 or less; lower-middle-income countries have incomes between $876 and $3,465; upper-middle-income countries have incomes between $3,466 and $10,725; and high-income countries have incomes of $10,726 or more. The United Nations Development Program (UNDP) classifies countries according to their level of human development, including health and education attainments. The simple division of the world into developed and developing countries is often useful for analytical and policy purposes. However, the wide income range of the latter serves as an early warning for us not to over generalize. Indeed, the economic differences between low- income countries in sub-Saharan Africa and South Asia and between upper- middle-income countries in East Asia and Latin America can be every bit as profound as those between high-income OECD and upper-middle-income developing countries. 2. In what way is development economics greater in scope than traditional economics? Answer: Development economics must encompass the study of institutional, political, and social as well as economic mechanisms for modernizing an economy while eliminating absolute poverty and transforming states of mind as well as physical conditions. More details is found in chapter 1. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
3. How does the concept of “capabilities to function” help us gain insight into development goals and achievements? What is the meaning of functionings? Answer: In effect, Sen argues that poverty cannot be properly measured by income or even by utility as conventionally understood; what matters is not the things a person has—or the feelings these provide—but what a person is, or can be, and does, or can do. What matters for well-being is not just the characteristics of commodities consumed, as in the utility approach, but what use the consumer can and does make of commodities. For example, a book is of little value to an illiterate person (except perhaps as cooking fuel or as a status symbol). Or as Sen noted, a person with parasitic diseases will
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}